Description of Value for Money Audit. Explanation.

Definition Value for Money Audit. Description.

A Value for Money Audit is a financial analysis looking
into whether resources are used in an economic, efficient and effective way..

There is no universally accepted definition of value for money
audit. The Canadian Comprehensive Auditing Foundation defines Value
for Money Auditing as:
“A comprehensive audit is an examination that provides an objective and constructive
assessment of the extent to which:

Financial, human and physical resources are managed with
due regard to economy, efficiency and effectiveness; and

Accountability relationships are served.”

The United States General Accounting Office Auditing Standard
defines Value for Money Auditing as:

“Performance audits include economy and efficiency and program
audits.

(a) Economy and efficiency audits include determining;
i. whether the entity is acquiring, protecting and using its resources (such
as personnel, property and space) economically and efficiently,
ii. the causes of inefficiencies or uneconomical practices, and
iii. Whether the entity has complied with laws and regulations concerning
matters of economy and efficiency.

(b) Program audits include determining;
i. The extent to which the desired results or benefits established by the
legislature or other authorizing body are being achieved,
ii. The effectiveness of the organization, programs, activities or function,
and
iii. Whether the entity has complied with laws and regulations applicable
to the program.”